China’s electronics exporters desperately look for an escape from US trade war nightmare

Exhibitors at the Hong Kong Electronics Fair said American buyers were thin on the ground, with trade war tariffs killing much of the market

Some companies have joined the exodus of manufacturers from China to Vietnam, while others are absorbing tariff costs, but trade war fatigue has set in

Reading Time:4 minutes

China’s electronics sector is suffering under the weight of the trade war, with US exports down significantly in 2019. Photo: AP

Published: 6:00am, 18 Oct 2019Updated: 1:03pm, 18 Oct 2019

Ada Yeung comes to the Hong Kong Electronics Fair every year to meet potential buyers for her company’s Chinese-made earbuds and speakers – but this year, having lost 70 per cent of her business to the US-China trade war, the need to find customers is urgent.

The lion’s share of exports for Shenzhen-based Xinvo Industrial Company, where Yeung works as the director of international sales, were previously bound for the United States. But in today’s tariff-heavy environment, she is looking for buyers from Europe and South America to try to offset some of the damage caused by tariffs, which have slashed nearly three-quarters of Xinvo’s sales.

If the trade war goes on much longer, the company will relocate its manufacturing base out of China, said Yeung, who has considered options in Bangladesh and Vietnam.

“We also manufacture original equipment for a big US earbud brand, but we haven’t received any orders from them this year,” Yeung said.

Despite the ongoing trade war between the world’s two largest economies and the escalating protests in Hong Kong, the Hong Kong Trade Development Council (HKTDC)’s annual event went “without a hitch”, organisers said.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x